Exhibit 2-6 Production possibilities curve data
A
B
C
D
E
F
Capital goods150
140
120
90
50
0
Consumer goods 0
20
40
60
80
100
In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:
A. the quantity of capital goods produced must be less than 150.
B. the quantity of consumer goods is constant for each change in the quantity of capital goods produced.
C. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods.
D. the amount of consumer goods produced must be greater than zero.
Answer: C
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